The ESRI Short-Run Macroeconometric Model of the Japanese Economy (2015 version): Basic Structure, Multipliers, and Economic Policy Analyses (in Japanese)

Koji Hamada, Takashi Hanagaki, Masahiro Hori, Koichiro Iwamoto, Taisuke Kameda and Ruriko Yokoyama

Economic Analysis, 2016, vol. 190, 71-83

Abstract: This paper describes the basic structure and multipliers of the 2015 version of The ESRI Short-Run Macroeconometric Model of the Japanese Economy, which was first released in 1998. The model is basically a demand-oriented, traditional Keynesian model with IS-LM-BP framework; however, it adopts recent developments in econometrics, such as co-integration and error correction to ensure long-run properties of the model. The followings are some of the multipliers of policy simulations. The fiscal multiplier, i.e., the effect of government investments on GDP, is 1.14 in the first year. The effect of income tax reduction is slightly smaller (than that of the fiscal expenditures) due to its leak to household savings. 1% point rise of short-term interest rate reduces real GDP by 0.32% in the first year.

Date: 2016
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.esri.go.jp/jp/archive/bun/bun190/bun190d.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:esj:esriea:190d

Access Statistics for this article

More articles in Economic Analysis from Economic and Social Research Institute (ESRI) Contact information at EDIRC.
Bibliographic data for series maintained by HORI nobuko ( this e-mail address is bad, please contact ).